Summary

Name: Dexpool.io
Website: https://dexpool.io/
Founded in: 2022
Parent company: Japan Private Asset Securities Inc.
Cryptocurrencies offered: Bitcoin, Ethereum, XRP, Litecoin, Binance Coin, Dogecoin, Cardano and others.
Security protocols implemented: Smart contracts, cross-chain bridge and blockchain verification

 

Background

DEXpool is a recently launched decentralized exchange (DEX) aggregator where users find access to liquidity from multiple DEXs under one comprehensive platform. By using this platform, users can easily get the best possible rates for their trades. They can do this by splitting their orders across several DEXs at the same time. DEXpool.io is built on the Ethereum blockchain and is compatible with several ERC-20 tokens. 

dexpool
Thus, DEXpool can be best described as an autonomous cross-chain liquidity protocol that provides efficient liquidity for DEXs. It makes use of mathematical invariants and leveraged trading to offer improved profitability for liquidity providers and a low-slippage automated exchange experience. 

Having already provided $300 million in liquidity to prominent decentralized exchanges like Uniswap and Curve, DexPool now sets its sights on extending liquidity support to other cryptocurrencies.

DEXpool aims to improve profitability and liquidity for liquidity providers compared to other DEXs. It presents a host of features that is seldom found elsewhere in other DEXs. 

Key Features

  • All-inclusive project dashboard: Users can see the dashboard immediately after logging in. It lets users easily check their available balance, funds deposited in a pool and earnings. Users can easily view online trading pairs with detailed information such as liquidity, transactions and 24 hour percentage variation. Users have the option of selecting one of several protocols such as TRC-20, BEP-20 and more.
  • Multi-coin liquidity: DEXpool provides users with liquidity from more than 90 coins by sourcing the price feed information from other popular decentralized exchanges such as Uniswap, Curve and PancakeSwap. The platform’s protocol assumes a total liquidity of $ 451,709,825 at the time of writing.
  • Volume-based trades: At DEXpool, trades are only executed when there is sufficient volume in the price change. This system ensures that all the trades are executed under market conditions which are favorable to the user.
  • Unique algorithm: DEXpool uses a unique algorithm that has been evaluated and optimized to provide the most efficient liquidity provisions across multiple exchanges and tokens. The optimal "amplification coefficient" or leverage for DEXpool is determined to be A = 79. This coefficient helps balance the liquidity provision and leverage ratios.
  • Optimal fee and liquidity provider profit: DEXpool charges an optimal fee of 0.073% which is allocated towards liquidity providers. If optimal parameters are set, liquidity providers can get a profit of 0.195% every eight hours.
  • User-friendly Interface and functions: DEXpool has a user-friendly interface and dashboard which makes everything simpler by pooling user funds together. It then distributes rewards based on the contribution of each user. The exchange also provides real-time monitoring and notifications of staking activities.

How Does DEXpool.io Work?

As an entity that provides liquidity for DEXs, it provides an efficient system of exchange for different cryptocurrencies without the need for any human market owners or exchanges. It uses a protocol which consists of a mathematical concept known as invariants to maintain balanced prices between the different coins in the liquidity pool. 

DExpool
Here’s a breakdown:

  • DEXpool combines constant-sum and constant-product invariants to maintain a balance for trades with leverage. 
  • Trades can be made with a certain amount of amplification which increases the profits. 
  • To gain insights into the project’s recipe for success, one can refer to the team’s whitepaper, which serves as a valuable source of information. 
  • It is important to note that due to the specific nature of this niche, some mathematical skills are required to comprehend the algorithm’s logic.
  • The system adjusts prices based on the ideal amount, while a dynamic fee-determining system operates in the background. 
  • This approach empowers users to make intelligent and well-informed decisions when investing in cryptocurrencies. 
  • The team’s simulations were conducted with a total contract liquidity assumption of $25,000,000, and trades were only executed if sufficient volume was available.

Under these circumstances, the team’s tests indicate the potential for a multi-stablecoin “savings account” that could yield an annual percentage yield (APY) of over 150%. With this system in place, DEXpool aims to establish a crypto liquidity ecosystem that is fair and balanced.

How to Open and Manage an Account at DEXpool.io?

There is a separate section at DEXpool which allows users to access information related to your account. The “Rewards” section allows users to view their rewards which are acquired by participating in liquidity activities. 

DExpool
In the “settings” section, users can change their password and implement 2FA authentication for superior security. The “support” section lets anyone contact the support team at any time they need them. 

DEXpool has a very streamlined on-boarding process and takes just a few steps to be completed. 

  • Users first have to create an account by entering their email address and password. They are advised to save their secret key somewhere safe for future reference. 
  • Users should accept the project’s terms and conditions after reading them. 
  • The platform then provides a Captcha checkbox to enter into the next stage of the verification process. 
  • Once all these steps have been completed, the account gets ready and the user is now part of DEXpool.

Dexpool.io – Liquidity Provider


DEXpool is known as a platform that empowers users to contribute liquidity to decentralized exchanges (DEXs) operating on different blockchains. The platform employs a sophisticated algorithm that continuously tracks prices and adjusts accordingly to maintain the optimal balance.

This adjustment is achieved through a price oracle, which ensures the direction of the ideal amount. DEXpool also incorporates a dynamic system to determine transaction fees, promoting fairness and equilibrium in return on investment for investors.

By supplying liquidity to DEXs, users play a vital role in enhancing trading activities, minimizing slippage, and enhancing price determination. As a reward for their participation, liquidity providers receive fees and incentives from both the DEXs and DexPool.io. It offers the following four functions. 

  • Adding liquidity: Here, users can access numerous liquidity pools at DEXpool with varying reward rates. Rates start from 0.05% and changes every four hours. 
  • Auto-compound: Auto-compounders refer to on-chain asset management protocol that employs data analysis and other techniques to automatically compound rewards. This way, it helps users achieve the highest possible compound interest rate. At DEXpool, users can earn passive income by compounding a part of their funds under the platform’s auto-compound feature. All participants and users can choose from a daily profit rate ranging from 0.56% to 0.97%. 
  • Liquidity archive: This function lets users check their previous liquidity investment operations in one place. 
  • Liquidity management: Once liquidity has been added for the first time, users can manage it by using the manage liquidity function. 

Some of the liquidity pools at DEXpool.io include the following. 

  • ETH (rewards: 0.1721% every 8 hours)
  • XRP (Rewards: 0.1065% every 8 hours)
  • BNB (Rewards: 0.1318% every 8 hours)
  • BTC (Rewards : 0.1513% every 8 hours)

DEXpool.io – Promotions

DEXpool has launched a promotional campaign targeted at new users, offering a deposit bonus of 100 XRP for a limited duration of ten days.

The purpose of this bonus incentive is to encourage new users to join the platform and experience its diverse features and benefits.

At the core of DexPool’s platform is the concept of rewarding users who contribute liquidity to DEXs through their DeFi interchain product, DEX Pool. To incentivize and motivate users, DexPool has introduced a compelling promotional campaign. Upon registering on the platform, users are eligible for a 100 XRP deposit bonus, valid for ten days. This bonus serves as a practical demonstration of how the liquidity protocol operates and aims to showcase the platform’s capabilities.

Security Measures

DEXpool operates under the parent company Japan Private Asset Securities Inc., which is a proprietary trading firm for providing liquidity in various cryptocurrencies and certain derivatives referencing cryptocurrencies. It is registered as a crypto-asset firm with the Kanto Local Finance Bureau (FIBO) and complies with the Money Laundering and Terrorist Financing. 

PROS and CONS
  • DEXpool offers a very high return on investment for users who stake. Some pools offer annualized returns of up to 100%.
  • It supports a wide range of cryptocurrencies including Ethereum XRP, Bitcoin, Dogecoin, Litecoin, Cardano and others.
  • It has a very sleek and non-complicated user interface that does not require much verification or KYC.
  • At present, DEXpool has a total of 300 online pairs that can be traded for one another.
  • It is a relatively new platform which does not provide much information about its team or the license behind it.
  • The returns can be highly volatile and uncertain, depending on the performance of the DEXs and the overall market conditions at that time.
Interface
4
Security
4.5
Collection of tokens
4.5
Transparency
4

4.3

(Overall Rating)

Final Verdict

DEXpool has a reputation of being a new yet comprehensive platform for users to manage their liquidity investments efficiently and securely. Stand out features such as the auto-compound feature allows users to generate passive income. It also provides various rewards and promotions for keeping users interested and engaged at all times. Lastly, its user-friendly interface let’s everyone easily join the platform and reap its benefits. 

A blockchain enthusiast, my expertise extends to marketing and advertising through which I was able to help a few notable startups in generating initial traction. Follow me on Twitter at @abhinavagrwl94 and reach out to me at abhinav[at]coingape.com
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.